Foresite Commercial Real Estate®️

Please join us in welcoming Erica Vidalez-Rodriguez to the Foresite team! Erica joins our Property Management department as an Assistant Property Manager, bringing with her eight years of experience in managing office spaces and delivering top-notch service in every aspect of her work. With a diverse background that has shaped her expertise in both business operations and client relationships, Erica is eager to contribute to our mission of fostering collaboration and excellence across the properties we manage. We're excited to have you on board, Erica!

We're kicking off 2025 with momentum! Out team came together for our annual kickoff meeting to review company stats and last year's achievements, while outlining goals and new benefits for the year ahead. A big thank you to Donna Havel, our Operations Manager, for organizing the meeting and setting us up with a delicious buffet breakfast-- the perfect fuel for our initiative and company goal sharing session!

We are thrilled to celebrate two outstanding team members for their contributions and dedication in 2024. Alexandria Tatem has been named our MVP of the Year for her efforts in advancing a new internal tool that has significantly improved our property tracking process. Her commitment to research and tracking data has truly made an impact. We're also excited to introduce the first Foresite Triple Crown Award, presented to Zach Parra. Zach secured the top spot in all three of our agent categories this year-- Leasing, Sales, and Overall performance-- highlighting the exceptional work he has accomplished with listings this year. Congratulations to Alex and Zach for their achievements! We're proud to have you both on the team.

This year, we’ve reached many milestones, both big and small. As we reflected on them during our Christmas party, we couldn’t help but feel incredibly grateful for you—our clients. Your support and encouragement throughout the year mean the world to us. From all of us at Foresite, we wish you a very Merry Christmas and a Happy New Year!

As we wrap up the year, our inbound lead data reveals a few clear hotspots in San Antonio. (December will be posted next month.) The top zip codes for 2024 are: • 78216 (near Hwy 281 & Loop 410) • 78249 (near Loop 1604 & I-10 and Loop 1604 & Bandera Road) • 78233 (near Live Oak, Loop 1604 & I-35) These areas have shown consistent activity with the tightening retail market. As highlighted in our Q3 2024 MarketWire Report, the lack of new retail space has driven up demand, pushing occupancy rates to new heights. However, lower-quality properties are not seeing the same growth in rents, mainly due to increased NNN costs (primarily property taxes) putting pressure on rents. For more market data, read our Q3 2024 MarketWire Report: https://lnkd.in/gBuX5zGp

California buyers were once seen as the largest buyer segment for San Antonio's multi-tenant retail centers, but recent data reveals a different story. Locals are now the leading buyer percentage. Read more in this article by Xavier Alvarado, an Investment Sales Agent at Foresite CRE. San Antonio multi-tenant retail investment closed deals data as of October 10, 2024. Collected by Xavier Alvarado. https://lnkd.in/g4K9UqDE

Which types of tenants are expanding the most? We analyzed our incoming leasing inquiries and categorized them to better understand market trends. Excluding General Retail, which covers inquiries that don't fall into a specific category, Restaurants/Bars emerged as the top segment for expansion. The next largest category is Contingent Use, making up 10.3% of overall inquiries. This category includes liquor stores, daycares, churches, and smoke/vape/CBD shops—tenantswhich may not always be landlord-approved. Beauty ranked third for Q3, followed by Office at 7.4%, Medical at 3.5%, and Fitness also at 3.5%. For more leasing activity insights, check out our research report at foresitecre.com/marketwire.

Property inventory has nearly doubled compared to this time last year, but transaction velocity is down by half. Average asking cap rates for all properties have risen by approximately 50 basis points year-over-year. However, for newly listed properties, cap rates increased by 20 basis points in Austin and decreased by 7 basis points in San Antonio, indicating that while pricing for new listings has remained relatively stable, properties are staying on the market longer. Alexandria Tatem Foresite Commercial Real Estate Associate Vice President of Investment Sales and Head of Research

“Although the Q3 stats are just starting to show it, we have recently seen a marked increase in properties coming to the market for sale. The FED decision to cut rates in September has spurred sellers who previously were waiting on the sidelines, to enter the market in expectation of continuing future rate cuts leading to stronger asset values. We expect this trend to gain further steam in Q4 and are optimistic it will continue through 2025. “ Chad Knibbe, CCIM Foresite Commercial Real Estate Director of Investment Sales

Q3 2024 Retail Market Insights This dataset highlights Class A and B retail centers that were publicly listed during Q3 2024. In San Antonio, the average asking cap rate for multi-tenant retail properties across all sizes is 6.76%, down 2 basis points from the previous quarter. In Austin, the average cap rate for all property sizes has risen to 6.15%, up 30 basis points compared to Q2.